Kuwait wealth fund not buying GM shares

Kuwait Investment Authority, the Gulf Arab country’s sovereign wealth fund, will not be taking part in General Motors’ initial public offering, a source said on Sunday.

Earlier this month, KIA’s managing director, Bader al-Saad, said the fund was considering taking in GM’s initial public offering if it is feasible, but a person familiar with the matter at KIA said they had decided not to invest due to the increase in the share price.

GM raised $20.1 billion last week, placing its shares at the top of a proposed range due to massive investor demand.

The IPO values GM at about $63 billion. Including an option that would allow underwriters to sell more shares, GM looks set to raise $23.1 billion, eclipsing the record $22.1 billion raised by Agricultural Bank of China in July.